Download PDF

1. Company Snapshot

1.a. Company Description

Veidekke ASA operates as a construction and property development company.It operates through Construction Norway, Infrastructure Norway, Construction Sweden, Infrastructure Sweden, and Denmark/Hoffmann segments.The company operates as a construction contractor; executes civil engineering projects; and produces asphalt and aggregates, as well as operates in the public road maintenance market.


It is also involved in the construction and civil engineering projects, as well as constructs commercial buildings.Veidekke ASA was founded in 1936 and is headquartered in Oslo, Norway.

Show Full description

1.b. Last Insights on VEI

Veidekke ASA's recent performance has been driven by a robust European market, with the STOXX Europe 600 Index climbing 3.93% and major stock indexes posting gains amid trade policy developments and ECB rate cuts. The company's strong fundamentals and growth potential have made it an attractive investment opportunity for those looking to diversify their portfolios. Additionally, Veidekke's recent announcement to build a residential project in Asker, Norway, is a significant development, with construction of the first phase scheduled to begin in October. This project is expected to contribute to the company's revenue growth and solidify its position in the Norwegian construction market.

1.c. Company Highlights

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

3. NewsRoom

Card image cap

Assessing Veidekke's (OB:VEI) Valuation After Recent Share Price Gains

Oct -12

Card image cap

Veidekke secures Nkr315m building renovation contract in Sweden

Sep -09

Card image cap

Veidekke secures contract for next phase of Odden residential project in Norway

Sep -01

Card image cap

Veidekke secures contract for logistics facility in Norway

Aug -26

Card image cap

Veidekke acquires tunnel construction contract for Gothenburg’s West Link Project

Aug -13

Card image cap

Veidekke to construct multipurpose facility in Bergen, Norway

Aug -11

Card image cap

Veidekke to build residential project in Asker, Norway

Jul -01

Card image cap

Exploring European Hidden Gems Including Miquel y Costas & Miquel And 2 Other Promising Small Caps

Apr -22

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.23%)

6. Segments

Construction Norway

Expected Growth: 2.5%

Veidekke ASA's 2.5% growth in Construction Norway is driven by increasing government investments in infrastructure development, rising demand for sustainable buildings, and a growing need for renovation of existing buildings. Additionally, the company's focus on digitalization and innovation in construction processes has improved efficiency and reduced costs, contributing to the growth.

Infrastructure Norway

Expected Growth: 1.8%

Veidekke ASA's Infrastructure Norway segment growth of 1.8% is driven by increasing government investments in transportation infrastructure, urbanization, and a growing need for sustainable infrastructure solutions. Additionally, the segment benefits from Veidekke's strong market position, efficient operations, and strategic partnerships.

Construction Sweden

Expected Growth: 2.2%

Veidekke ASA's Construction Sweden segment growth of 2.2% is driven by increasing infrastructure investments, urbanization, and a strong housing market. Government initiatives to improve transportation networks and renewable energy infrastructure also contribute to growth. Additionally, the segment benefits from Veidekke's strong market position, efficient operations, and strategic partnerships.

Infrastructure Sweden

Expected Growth: 1.9%

Veidekke ASA's Infrastructure Sweden segment growth of 1.9% is driven by increasing government investments in transportation infrastructure, urbanization, and a growing need for sustainable construction solutions. Additionally, the segment benefits from Veidekke's strong market position, efficient operations, and strategic partnerships.

Commercial Buildings

Expected Growth: 2.8%

Veidekke ASA's Commercial Buildings segment growth of 2.8% is driven by increasing demand for sustainable and energy-efficient buildings, government initiatives for urban development, and a strong pipeline of projects in Norway and Sweden. Additionally, the company's focus on digitalization, innovation, and cost savings has improved operational efficiency, contributing to the segment's growth.

Eliminations

Expected Growth: 0.5%

Veidekke ASA's 0.5% growth is driven by increasing infrastructure investments in Norway, steady demand for residential construction, and a moderate recovery in the Swedish construction market. Additionally, the company's focus on operational efficiency and cost savings initiatives contribute to its stable growth.

Other Operations

Expected Growth: 1.5%

Veidekke ASA's Other Operations segment growth of 1.5% is driven by increased demand for infrastructure projects, expansion into new regions, and strategic partnerships. Additionally, the company's focus on sustainable construction methods and digitalization has improved operational efficiency, contributing to the segment's growth.

7. Detailed Products

Construction Services

Veidekke ASA provides construction services for residential and commercial buildings, including new builds, renovations, and restorations.

Property Development

Veidekke ASA develops and sells residential and commercial properties, including apartments, houses, and office spaces.

Infrastructure Construction

Veidekke ASA provides infrastructure construction services for roads, highways, bridges, and other public infrastructure projects.

Industrial Construction

Veidekke ASA provides industrial construction services for factories, warehouses, and other industrial facilities.

Demolition and Recycling

Veidekke ASA provides demolition and recycling services for buildings, infrastructure, and other structures.

Asphalt and Aggregate Production

Veidekke ASA produces and supplies asphalt and aggregate materials for construction and infrastructure projects.

8. Veidekke ASA's Porter Forces

Forces Ranking

Threat Of Substitutes

Veidekke ASA operates in the construction industry, where substitutes are limited. However, the company faces some threat from alternative materials and construction methods.

Bargaining Power Of Customers

Veidekke ASA's customers have limited bargaining power due to the company's strong market position and the complexity of construction projects.

Bargaining Power Of Suppliers

Veidekke ASA's suppliers have some bargaining power due to the company's dependence on raw materials and equipment. However, the company's large scale of operations helps to mitigate this power.

Threat Of New Entrants

The threat of new entrants in the construction industry is low due to the high barriers to entry, including the need for significant capital investment and specialized expertise.

Intensity Of Rivalry

The construction industry is highly competitive, with many established players competing for market share. Veidekke ASA faces intense rivalry from other construction companies.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 21.44%
Debt Cost 7.38%
Equity Weight 78.56%
Equity Cost 9.02%
WACC 8.67%
Leverage 27.28%

11. Quality Control: Veidekke ASA passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Veidekke

A-Score: 7.5/10

Value: 5.7

Growth: 5.1

Quality: 7.0

Yield: 9.4

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

Stock-Card
Bilfinger

A-Score: 6.4/10

Value: 5.3

Growth: 7.1

Quality: 5.2

Yield: 6.9

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

Stock-Card
BAM

A-Score: 5.8/10

Value: 6.7

Growth: 4.8

Quality: 4.7

Yield: 5.6

Momentum: 9.5

Volatility: 3.3

1-Year Total Return ->

Stock-Card
Mirbud

A-Score: 5.3/10

Value: 7.4

Growth: 4.7

Quality: 4.7

Yield: 3.8

Momentum: 7.0

Volatility: 4.3

1-Year Total Return ->

Stock-Card
Renew

A-Score: 4.9/10

Value: 5.3

Growth: 5.9

Quality: 6.4

Yield: 4.4

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

Stock-Card
Assystem

A-Score: 3.8/10

Value: 3.2

Growth: 3.7

Quality: 3.2

Yield: 6.2

Momentum: 2.0

Volatility: 4.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

170.8$

Current Price

170.8$

Potential

-0.00%

Expected Cash-Flows